Loans between the auditor and the client are permitted in some circumstances.

Name: Loans between the auditor and the client are permitted in some circumstances.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Loans between the auditor and client are permitted in certain circumstances, for example, when a loan is part of normal business transactions and is made on commercial terms. However, such loans should be properly disclosed in the financial statements and should not impair the auditor's independence or objectivity.

Loans Between the Auditor and the Client Are Permitted in Some